Wall Street is slowing down after the market rally last week. Stocks opened lower on Tuesday to kick off a shortened trading week due to the Juneteenth holiday. Stocks closed lower on Friday, but still earned overall weekly gains. Both the S & P 500 and Nasdaq Composite notched their best week since March on Friday, with gains of 2.6% and 3.25%, respectively. The Dow Jones Industrial Average posted a weekly gain of 1.3%. Markets remained resilient despite suggestions from Federal Reserve’s policy-making committee that forecast two more rate hikes to benchmark interest rates before the end of the year. The central bank left rates unchanged at the June policy meeting last Wednesday. Meanwhile, some big companies on Wall Street, including Tesla and Intel , are now subject to more bearish sentiment from analysts, whose price targets and investment recommendations suggest the stocks could be overheated. CNBC used FactSet data to screen for stocks that meet the following criteria: Analyst forecasts call for a drop of more than 10% in the stock’s price over the next 12 months. Fewer than 50% of analysts rate the stock as a buy. The stocks are S & P 500 members. Tesla has been on fire so far this year. The stock has jumped 115% gain from the start of 2023 — although it has yet to regain its price at the end of 2021. The surge in Tesla stock comes despite concern over the company’s new strategy , which prioritizes mass vehicle production over profit margin growth. Analysts are growing more weary of the electric vehicle giant, however, as only 39% of analysts polled by FactSet rate the stock a buy. Meanwhile, average analyst price targets imply a nearly 23% decline in Tesla’s stock price from current trading levels. TSLA YTD mountain Tesla stock has surged more than 115% so far this year. Chipmaker Intel has jumped 32% since New Year’s, riding the wave of investor optimism over artificial intelligence. The stock has climbed nearly 17% over the past month alone. Intel recently announced plans to spend about $33 billion on a chip plant in Germany, partly subsidized by the German government. But analysts are skeptical on the stock over the next 12 months, as evidenced by just under 13% of those covering the company rating Intel shares a buy, according to FactSet. The average price target implies a 10% decline in Intel stock from current levels. INTC YTD mountain While Intel’s climb still lags some other names benefiting from the artificial intelligence craze, the stock is still up more than 37% from the start of the year. Asset manager T. Rowe Price has risen about 3% from the start of 2023. On June 12, the Baltimore-based firm reported a decline in assets under management as of the end of May, to $1.346 trillion, down from $1.353 trillion in April. Not a single analyst polled by FactSet rates T. Rowe Price stock a buy, and analysts’ average price target implies a 19% decline in the stock over the coming year. TROW YTD mountain None of the analysts polled by FactSet rate T. Rowe Price stock as a buy.
Too far, too fast: Wall Street sees Tesla and these other shares declining in the next 12 months